International Journal of Management Sciences and Business Research, 2014 ISSN (2226-8235) Vol-3, Issue 7
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Effects of Leadership Styles on Employee Performance: Integrating the Mediating Role of Culture, Gender and
Moderating Role of Communication
Author Detail:
Khalid Rasheed Memon1-1
Lahore Leads University Lahore, Pakistan
Abstract
Purpose:
Leadership, being the most researched topic of all social
sciences concepts is equally of great importance for the
organizations as well as employees. Most of the
researches conducted till now have focused Western
Culture and Gender, whereas the East including China,
Pakistan, India, Malaysia, Japan and others are still in
vague, whereas they contribute a major share in world‟s
economy. Therefore, thorough literature review has been
conducted to come across a new model based on
integrated approach, exhibiting the relationship between
Leadership Styles and Employee Performance through
the mediating role of Culture and Gender while
Communication playing the moderating role.
Design / Methodology
The paper is based on theoretical underpinning.
Viewpoint of Leadership, its styles focusing
Transactional and Transformational Styles and impact on
employee performance have been argued through in depth
literature review and the relationships between different
variables have been established accordingly.
Findings
Effects of Leadership Styles on employee performance
were found to have dissimilarity due to the mediating
variables of culture and gender whereas communication
was found to be one of the major ingredients of effective
leadership style
Practical Implications/Limitations
Rational Relationships among variables have been
deliberated through research findings of various authors
to craft practicality of theoretical research while making it
handy for practitioners and trainers. However, the
presented model is to be tested through empirical research
across the continents and various cultures.
Originality / Value
Thorough and comprehensive literature review of the said
relationships is the value creating and differentiating
factor of this article. However, a potential contribution of
this study could be the study of three variables; culture,
gender and communication (mediating and moderating)
instead of single variable study where most of the studies
put in only one variable.
Key Words
Leadership Styles, Employee Performance, Culture,
Transformational and Transactional Leadership,
Communication
1- Introduction:
Although leadership has become an older concept and
lot has been written on this topic since the middle of the
twentieth century [1], yet the function of a leader is so
much critical and a factor of major influence to the
organization [2] that every dimension, relationship and
aspect needs further elaboration and research.
Leadership has been defined by various authors in their
own style and understanding, in number of ways [3]
however, Communication of the leader does play a
remarkable role as everything is to be transferred into the
hearts of others through communication and causes the
effect of charisma [4-7] and this is how leaders win the
confidence and trust of their followers, paving the way
to inculcate one‟s vision [8, 9]. Even few leaders are
aware of their exact effect on followers due to the fact
that it is deciding factor of follower‟s direction whether
positive or negative [10], yet followers individual
characteristics and differences create differentiation in
reception of leaders influence [11]
Leadership have been defined through several theories
[1, 3, 12] where most authorities divide leadership into
four major perspectives (1) Trait Theories (2) Behavior
Theories (3) Contingency/Situational Theories (4)
Neocharismatic Theories [1, 10] and three major
leadership styles Transformational, Transactional, and
Laissez-Faire Leadership Styles [13-15], yet the core
focus of today‟s studies is on transactional and
transformational leadership [2],
Ardichvili and Kuchinke (2002) in their article
“Leadership styles and cultural values among managers
and subordinates: a comparative study of four countries
of the former Soviet Union, Germany, and the US”
describe Bass (1997) view point of the universality of
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the paradigms of transactional and transformational
leadership while considering them as key concepts of
leadership theories, however adding further the research
of Den Hartog et al. (1999) is discussed, presenting the
study of sixty two cultures demonstrating the
requirements differing with respect to different cultures
and having different conceptions of what leaders should
constitute of.
Similarly, those organizations survive and gain
competitive advantage in today‟s turbulent environment
and changing technological era who have creative
employees and they consider their employees as their
assets [16-18] and thus there are a number of studies that
have investigated that although there are a number of
other factors like job challenge and interest, working
conditions of organization and climate, growth and
advancement opportunities, peer relations etc yet
leadership is the most important factors that becomes the
cause of employees performance and satisfaction [10]
and it‟s the leadership that nurtures and develops
creativity among employees [11, 16].
Shalley, Zhou et al. (2004) explain that it‟s due to the
creativity that employees try to develop and improve
their individual practices, policies and procedures for
developing products/services through their useful ideas,
resulting in overall organizational improvement; thereby
adapting external environmental changes, competing and
responding to the opportunities[18] Thus employee
performance / organizational performance is largely
dependent on leadership.
This particular article is a theoretical review of empirical
literature for understanding the relationship of employee
performance through leadership styles (focusing
transactional and transformational styles) prevailing in
different cultures and the effects of communication in
transactional and transformational leadership styles.
Thus a potential contribution of this study could be the
study of two variables; culture and communication
(mediating and moderating) together instead of single
variable study where most of the studies put in only one
variable.
2.1- Defining a Leadership Style
Vigoda-Gadot (2007) in his article "Leadership style,
organizational politics, and employees‟ performance:
An empirical examination of two competing models."
mentions that leadership is all about influencing people
to get the work done through inspiration rather than
using coercive powers and authority. Thus today‟s
researches focus mainly on transformational leadership
paradigm due to the fact that it is based on relationship
of leader with its follower rather than the authority
element. Yet the current studies consider of transactional
and transformational leadership styles as center to the
leadership theories whereas full range of model of Bass
(1994) includes laissez-faire behavior along with these
two [12, 15]
Molero, Cuadrado et al. (2007) describe leadership style
as consistent set of behaviors / patterns, proposing two
dimensions in leaders behaviors, Structure initiation
which includes task oriented leaders and Consideration
which includes relation oriented leaders. These two
dimensions got most of the concentration of researchers
till mid 1980s and then the concept of transformational
leadership emerged and was found to be empirically
independent of task and relationship orientation and
could be directive or participative, depending on the
situation or on their personal characteristics. Madlock
(2008) suggest that followers report to be satisfied with
those leaders who posses both relation and task oriented
behaviors.
Oldham and Cummings (1996) describe leadership style
as combination of three elements; style characteristics,
an implicit leadership philosophy and a set of
management skills typical of each style. The emphasis
on performance and people is described through
leadership style whereas leader‟s role and assumptions
about people is described through leadership philosophy.
Management Skills, however, include management skills
characteristics of a style.
Thus, a leadership style can be defined as a leader's style
of providing direction, motivating people and
implementing plans. It is the result of the philosophy,
personality, and experience of the leader
2.2 Types of Leadership Styles
“Leadership is a process by which an individual
influences the thoughts, attitudes, and behaviors of
others. The Leaders set a direction for the firm; they help
see what lies ahead; they visualize what they might
achieve and how to achieve it; they encourage and
inspire the subordinates” [19] .Thus, Leadership, being
the ability to guide followers for achieving shared goals,
influence others through inspiration and charisma or by
using power, a name of commitment, hardworking and
excellence, has a number of dimensions, paradigms,
styles and ways described by earlier theories. [1, 3].
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Leadership have been defined through several theories
[1, 3, 12] where most authorities divide leadership into
four major perspectives (1) Trait Theories (2) Behavior
Theories (3) Contingency/Situational Theories (4)
Neocharismatic Theories [1, 10]
Stogdill (1963) and Davis (1972) proposed the
personality and traits that a successful leader should
have [1]. “Trait leadership is defined as integrated
patterns of personal characteristics that reflect a range of
individual differences and foster consistent leader
effectiveness across a variety of group and
organizational situations” [20]. Focus is primarily on
finding a group of heritable attributes that differentiated
leaders from non-leaders
Behavioral Theories approach emerged from the Ohio
State University that began in 1945. Halpin & Winer
(1957) pointed out two dimensions, initiating structure
and consideration. “Consideration may be defined as
behaviors by means of which the leader establishes
rapport with his or her employees, two-way
communication, mutual respect, and understanding.
Consideration includes behavior indicating trust and
warmth between the supervisor and his or her group and
emphasizes concern for group members‟ needs. On the
other hand Initiating Structure may be defined as
behaviors by means of which the leader defines or
facilitates group interaction toward goal attainment. The
leader does this by planning, scheduling, criticizing,
initiating ideas, organizing the work, defining member
roles, assigning tasks, and pushing for production. [10].
Subsequently, many studies such as those of Stogdill
(1963), Likert (1967), and Kotter (1988) also offered
related behavioral theories of leadership [1]. Behavioral
Theory assumes that the success of a leader is based
solely on how they behave. Behavioral theories of
leadership do not seek inborn traits or capabilities.
Rather, they look at what leaders actually do.
Contingency model of leadership was first developed by
Fiedler in 1967 whereas Hersey and Blachard also
developed the situational leadership theory in 1977
which used the two leadership dimensions in terms of
task and relationship behaviors, where these two
dimensions have received considerable attention in
cross-cultural studies [21], and combined their degrees
into four specific leadership behaviors: telling, selling,
participating, and delegating.[10] “According to the
contingency theory, leaders adopt a suitable leadership
style depending on the readiness of followers. The
telling style is suitable for unable and unwilling
followers. The selling style is effective for unable and
willing followers. The participating style is useful for
able and unwilling followers. The delegating style is
adequate for able and willing followers”. [1]
Neocharismatic Theories are mainly represented by
transactional leadership and transformational leadership
[1] and lot much work has been carried out on both types
of leadership theories.
For instance, Bass (1985) presented four dimensions of
transformational leadership, three dimensions of
transactional leadership, and a non-leadership dimension
of laissez-faire leadership. Similarly, Avery (2004)
categorized leadership into four leadership paradigms
classical, transactional, visionary, and organic and
Goleman (1995) prefers six leadership paradigms. [22].
According to Judge and Piccolo (2004), three
dimensions of transactional leadership are contingent
reward, management by exception-active, and
management by exception-passive.
Nevertheless, the term transformational leadership was
produced by the politologist, Burns, in 1978, but was
later on developed by Bernard M. Bass and colleagues,
till its current status [23, 24]. According to Bass, there
are two types of leadership: transformational and
transactional. [14]
According to the Bass “transformational leadership is
not a rare phenomenon, limited to a few extraordinary
leaders, but, on the contrary, it can be found in various
degrees in all kinds of groups and organizations” (Bass,
1985, p. 15). Thus, Bass and colleagues designed an
instrument capable of appraising transformational
leadership.
This instrument, the Multifactor Leadership
Questionnaire (MLQ), Bass and Avolio (1997)
established that transformational leadership is made up
of following five factors: (a) Idealized Influence
(attributed), or attributed charisma, which indicates to
what extent followers trust and respect the leaders; (b)
Idealized Influence (behaviors), which reflects to what
extent the leaders perform behaviors that reflect their
values, beliefs and their sense of a mission; (c)
Inspirational Motivation, which is related to the way in
which the leaders are capable of transmitting and
expressing their project or vision; (d) Intellectual
Stimulation, which indicates to what extent the leaders
promote the growth and intellectual independence of
their followers; and (e) Individualized Consideration,
which has to do with the behaviors of socio-emotional
support to followers, as well as their individual
acknowledgement.
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Similarly, a number of other authors have presented a
number of other leadership styles, for instance, Rensis
Likert identified four main styles of leadership, 1)
Exploitive authoritative 2) Benevolent authoritative 3)
Consultative 4) Participative, in particular around
decision-making and the degree to which people are
involved in the decision. [25]. Kurt Lewin and
colleagues did leadership decision experiments in 1939
and identified three (3) different styles of leadership, 1)
Autocratic 2) Democratic 3) Laissez-Faire, in particular
around decision-making. [26]. Daniel Goleman, Richard
Boyatzis and Annie McKee, in Primal Leadership,
describe six styles of leading, the Visionary Leader, the
Coaching Leader, the Affiliative Leader, the Democratic
Leader, the Pace-setting Leader and the Commanding
Leader that have different effects on the emotions of the
target followers. [27]
[28] identified three forces that directs the leader's
action: the forces in the situation, the forces in then
follower and also forces in the leader.
Thus, it can be observed through literature review that
there are a number of different “Styles” to leadership
that are based on different assumptions and theories.
The style that individuals use will be based on a
combination of their beliefs, values and preferences, as
well as the organizational culture and norms as well as
the situation, which will encourage some styles and
discourage others. However, it should be considered
that different leadership styles are required as per the
situation. With little time for a task, and higher
experience or expertise than team members, you need to
adopt autocratic leadership style being the best and
effective. Whereas, with homogenous level of expertise
and highly motivated and aligned team, democratic or
laissez-faire style may be more effective. Thus the
purpose of adopting a style is to achieve the purpose
and objectives of the organization or a group while
balancing the interests of its individual members as well
as organizational decorum/discipline.
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Table 1: Periodic Studies on Leadership and related concepts
Studied By Theme Leadership Style / Theory Dimensions
Hemphill, Stogdill, Coons,
Fleishman, Harris, and
Burtt (1945-1948)
Ohio State Leadership
Studies
Leadership does not seek inborn traits or
capabilities. Rather, they look at what
leaders actually do
Developed the Leaders Behavior
Description Questionnaire (LBDQ)
Behavioral Theories Initiating Structure and
Consideration, planning, scheduling,
criticizing, initiating ideas, organizing
the work, defining member roles,
assigning tasks, and pushing for
production.
Kahn, Likert, Katz,
Maccoby, and Morse
(1947)
Michigan Leadership
Studies
Leaders adopt a suitable leadership style
depending on the readiness of followers.
Approach towards leaders-Employee-
Centered and Production-Centered.
Contingent/Situational
Theories
Telling, Selling, Participating, and
Delegating. Approach towards
Employee-
Centered and Production-Centered
Leaders.
Blake and Mouton [29] Five basic styles of leadership: A
Production Pusher, D o-Nothing Manager
Organization Man, Country Club
Manager, and Team Builder.
Managerial Grid, Behavioral
Research
Concern for Production and concern
for mature and healthy relations
among those engaged in production.
Burns [30] Transformational leadership is more
effective than Transactional leadership.
Transformational Leadership
Style Transformational leadership is an
ongoing process rather than the
discrete exchanges of the
transactional approach.
Bass [24], [31] Leadership Styles and its segregation and
applicability in diversity. Development of
Multifactor Leadership Questionnaire
Transformational and
Transactional Leadership
Behaviors
Three types of transformational
leadership, Attributed Charisma,
Individual Consideration, Intellectual
Stimulation and two types of
transactional leadership, Contingent
Reward, Management-by-Exception
Manz and Henry P. Sims
[32]
Encourage self-Observation, Encourage
Self-Goal Setting, Self-Reinforcement,
Self-Criticism, Self-Expectation,
Rehearsal
Self-Management
Leadership Behavior
Observation and analysis of self and
improving through self control and
practice
Peter P. Mykytyn, et al.
[33]
Various personality traits including
communication, control and negotiation
effective for a leader and organizational
effectiveness
Behavioral Skills and Traits
for Knowledge Acquisition
Communication/ Problem
Understanding,
Personal Traits, Control,
Organization, Negotiation
Dorfman and House [34] Cultural congruence in development and
leadership is more effective; Cultural
difference can be stimulating and bring
about positive change; and Leadership is
universal activity
Culture and Leadership Culture differences, Leadership
Development in different cultures
Goleman, et al. [27] Described six styles of leading, the
Visionary Leader, the coaching Leader, the
Affiliative Leader, the Democratic Leader,
the Pace-setting Leader and the
Commanding Leader
Leadership Styles Study of different leadership styles
and their effects on the emotions of
the target followers
Conger and Kanungo [35] Described five behavioral attributes of
Charismatic Leaders that indicate a
more transformational view-point
Transformational and
Charismatic Leadership
Styles
Vision and articulation, Sensitivity to
the environment, Sensitivity to
member needs, Personal risk taking,
Performing unconventional behavior
Yukl [36] Described 14
categories of leader behavior
Leadership Styles Planning and organizing, problem
solving, clarifying, informing,
monitoring, motivating, consulting,
recognizing, supporting, managing
conflict and team building etc
Zaccaro, et al. [20] Trait Leadership (2004) Model Leadership Traits Based on other models of leader traits
and leader effectiveness/performance
2.3- Transactional Leadership Style While organizations have clear structure and its clearly
known that what is required from the subordinates
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where as the rewards they will get for following orders
are mentioned as well except the punishment which is
not always mentioned but obviously known and
understood with formal systems of discipline in place,
then transactional style of leadership works best. [36]
Here, the prime purpose of a follower is to do what their
leader tells them to do and followers have agreed to do
a job, as a part of the deal is that they surrender all
authority to their leader. During the initial stages, the
follower is given a contract, being negotiated at that
stage and agreed on certain salary and benefits thereby
surrendering himself and giving authority to his leader.
Work is then assigned to the follower on complete
responsibility basis. In case of any fault, the follower is
completely responsible and will be punished for his or
her fault (just as they are rewarded for succeeding).
Thus followers are motivated by reward and
punishment. [36]
Transactional leadership is based in contingency, in that
reward or punishment is contingent upon performance.
The main limitation is the supposition of “rational
man”, a person who is in principal motivated by money
and simple reward, and hence whose behavior is
predictable. The underlying psychology is Behaviorism,
together with the Classical Conditioning of Pavlov and
Skinner's Operant Conditioning. These theories are
largely based on controlled laboratory experiments
(mostly with animals) and ignore
multifaceted emotional factors and social values.
In practice, there is adequate truth in Behaviorism to
sustain Transactional approaches. This is reinforced by
the supply-and-demand situation of much employment,
coupled with the effects of deeper needs, as in Maslow's
Hierarchy. When the demand for a skill goes beyond
the supply, then Transactional Leadership often is
insufficient, and other approaches are more effective.
Other dimension of Transactional leadership styles are
Contingent Reward and Management by Exception. In
the case of active management by exception, the leader
looks for rules and procedures, strictly follows the
mentioned process and he or she takes corrective action
before or when these occur. Whereas Passive
management by exception implies that the leader is
reactive and takes action after the event has occurred i.e.
acts in response not pro-actively.
Therefore, it is defined as a Leadership Style that
“involves a social exchange process where the leader
clarifies what the followers need to do as their part of a
transaction (successfully complete the task) to receive a
reward or avoidance of punishment (satisfaction of the
followers‟ needs) that is contingent on the fulfillment of
the transaction (satisfying the leader's needs)” [15]
[37] also defines Transactional leadership as leader
aptitude towards identification of followers needs and
aspirations and clearly demonstrate the ways to fulfill
these needs in exchange for performance of followers.
Thus it operates on the basis of “Exchange” which is a
game of balance due to the fact that Transaction literally
means “exchange” therefore, it deals with the exchange
between leader and his followers You help me in
achieving this and I help you then you help me and this
continues. Exchanges are not necessarily financial or
physical in nature. Emotional exchanges, which we use a
great deal of the time, can be of surprising value.
However, violations against the exchange principle in a
group can be a heinous crime, punishable by ostracizing
or even expulsion. The fear of such penalties is more
than enough to keep many people on the straight and
narrow [38]. Exchange is just like a bank account.
Sometimes I put things in, sometimes I take things out,
where it‟s based on long-term relationships and we are
programmed by these rules to the point where we will
obey them even in shorter-term and low-trust exchanges.
If either party‟s needs are not fulfilled upto the
satisfaction level, he or she leaves and breaks the
contract as decided earlier in a mutual contract. [36]
2.4- Transformational Leadership Style
The study of transformational leadership has become
one of the main paradigms during the last two decades,
when addressing leadership within organizations [14].
Bass‟s Theory is the key to this distinction between
transformational leadership and transactional leadership
at the theoretical level. For Bass, the theories and studies
based on transaction / exchange were missing something
when explaining “high-level leadership”, i.e. Leadership
is capable of playing a pivotal role and achieving really
important changes, both in the followers and in the
organization. Thus, this leadership style also called
charismatic leadership, had not been addressed by social
and organizational psychology because it was considered
an extraordinary phenomenon, and impossible to
measure by questionnaires or to manipulate in
experimental studies. [24]
By definition, Transformational leaders inspire others
with their vision, promote this vision, demonstrate
confidence in themselves and their mission and
encourage others to support their mission [39, 40].
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Transformational Leadership pursues organizational
goals by focusing on follower‟s motivation [30]. Thus
transformational leadership is performance oriented and
puts emphasis on the competencies and skills that keep
the organization competitive [41]
This clarity of organizational vision & mission,
employees‟ role, job descriptions, policies and
procedures, rewards, management‟s support and
empowerment enhances employees‟ satisfaction towards
their jobs and organization ultimately improving
customer satisfaction[42]. Thus, Transformational
leaders pay attention towards organization, consider it as
a whole while encouraging everyone and try to help out
each other for transformation. [12]
According to [43] transformational leadership provides
an ideal of leadership, given contemporary developments
in the global business world. According to [15]
Transformational leaders have shown that their
interpersonal relationships were warm, accepting and
supportive. Research Shows that these factors create
positive organizational behavior while increasing
psychological strengths of employees, their health as
well as performance [44]. All these factors are
considered as contextual factors or dimensions of the
work environment that potentially influence an
employee‟s creativity but that are not part of the
individual [45] and these effect employee positively by
increasing their creativity, innovation capability and
work performance through “intrinsic motivation” which
is necessary, if organizations want to gain competitive
advantage [11, 18, 46, 47]. One of the methods, the
Transformational Leader applies to sustain motivation is
in the use of ceremonies, rituals and other cultural
metaphors. Small changes get big hurrahs, impelling up
their significance as a sign of real progress. Overall, they
equilibrate their attention between action that fosters
progress and the mental state of their followers.
Conceivably more than other approaches, they are
people-oriented and consider that success comes first
and last through deep and relentless commitment.[31]
The terms charisma and transformational leadership
are frequently used synonymously, however, Bass
(1985, 1990) separates them, with charisma while
structuring as a part of transformational leadership [28].
[24] theorized that transformational leadership
comprises of four dimensions: intellectual stimulation,
individualized consideration, charisma, and
inspirational motivation. Intellectual stimulation
involves valuing creative skills and putting efforts for
enhancing follower‟s ability, challenging the status quo,
and encouraging problem solving approach, intellectual
curiosity so as to get them ready for change and
transformation. Individualized consideration focuses on
developmental side and acts as mentor. This is achieved
by giving due attention, understanding their concerns,
sympathizing, providing feedback, advice and support.
Charisma, or idealized influence, is acting as role
model through the creation of trust, respect for each
other. Leader shows full dedication and commitment
and gives followers a sense of empowerment and
ownership. It can be viewed in terms of both behaviors
and attributions. And inspirational motivation refers to
energizing followers by articulating a compelling
vision, clearly communicating the goals and
expectations. [11, 15]
Charisma is the most important factor in the larger
concept of transformational leadership[48]. Many
politicians use a charismatic style, as they need to
gather a large number of followers. Religious leaders,
too, may well use charisma. Conger and Kanungo 1998)
posits Musser (1987) notes that charismatic leaders seek
to inspire both commitment to ideological goals and
also loyalty to themselves. The extent to which either of
these two goals is dominant depends on the
underlying motivations and needs of the leader.[35]
Followers describe their charismatic leaders as those
who make everyone enthusiastic about assignments,
who command respect from everyone, who have a
special gift of seeing what is important and who have a
sense of mission that they transmit to followers.
2.6- Employee Performance
Leadership Effectiveness, although it differs from writer
to writer, can best be measured through employee
performance and organizational effectiveness/growth.
Generally, Leader‟s group or organization is evaluated
with regards to the goal attainment and task completion
as desired. Objectively, employee‟s performance is
measured through profit margins, market share, increase
in production, decrease in cost, return on investment etc.
Subjectively, change in employee‟s behavior, learning
and development capability, employee commitment,
enhancement in skills and competencies etc are
measured as leadership effectiveness proofs. [49]
Similarly, organizational effectiveness is another
resultant of employee performance as well as leadership
effectiveness.
2.5- Culture
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Despite the debates and difficulties in establishing the
agreeable meaning of the concept of culture, it is used
far and wide as a key variable [50]. For example, culture
is suggested to both shape and reflect values [51],
religion [52], philosophy[53] and history [54]. Culture is
so ingrained in all facets of human activity that it‟s all
encompassing nature may bound its usefulness in
practice to conceptualizing leadership and shaping the
development of leaders. Symbolically culture is like the
air we breathe; all around us, fundamental, and yet
difficult to determine and to change.
According to Ayman and Korabik [50] most agree on
Kluckhohn‟s (1951) definition that “culture is an
acquired and transmitted pattern of shared meaning,
feeling, and behavior that constitutes a distinctive human
group”.
Lumby & Foskett defined Culture as “is the set of
beliefs, values and behaviors, both explicit and implicit,
which underpin an organization and provide the basis of
action and decision-making, and is neatly summarized as
„the way we do things around here‟.”
Lumby & Foskett further argued that the culture of every
organization is unique, derived from the context in
which the organization operates and the values of those
who have led or been part of the organization over time.
“This unique culture will reveal itself through a number
of characteristics:
a) conceptually, through the ideas that are valued
and promoted
b) verbally, through the language, terminology and
discourses in use
c) behaviorally, through the activities, social
interactions and rituals that occur
d) visually, through the designs and styles adopted
by the organization in its physical and material
components”
Thus the culture could be transmitted through
conceptual, verbal, behavioral and visual means.
Moreover, there are certain basis of this culture
representation which includes the contextual factors, the
country / nation where we do belong, our religion, our
philosophy or code of life etc.
2.6- Gender
Due to greater women involvement in workplaces, the
study of gender differences has become of great interest
and importance to the researchers. According to [50],
“Gender, consists of much more than socio-demographic
gender. It‟s a multidimensional and multilevel
phenomenon with many different aspects which include
intra-psychic perspective such as gender schemas and
stereotypes; gender-role identity and gender-role traits,
attitudes, and values”
The gender stereotypes, based on past roles, often lead to
a considerable bias against women and present a major
problem for those trying to act as leaders in
organizations [55]. As Bass (1981) states: “Stereotypes
have their effects on behavior. We expect women to be
more submissive, so we have trouble taking orders from
women, no matter what they are like individually.
Women leaders themselves are in conflict when facing
divergence in what is expected from them in their roles
as managers and in their roles as females, but do these
stereotypes reflect reality? (p. 496)
2.6- Leader’s Communication Skills
Leadership is a behavior enacted through
communication. Specifically, [4] suggested that
communication shapes the perceptions of a leader‟s
charisma, where communication can be divided into the
content of the leader‟s messages and the presentation of
those messages. Similarly, messages sent by leaders are
considered to contain both affective and cognitive
strategies and when leaders effectively communicate
their vision, they win the confidence of followers, which
in turn aids in communication satisfaction between the
leader and follower (Pavitt, 1999) Effective leaders may
tend to communicate using more metaphors, symbols,
imagery and persuasive argumentation to influence
others to accept their position (Bass 1985). Conger and
Kanungo (1998) stated that, “to be charismatic, leaders
not only need to have visions and plans for achieving
them but also must be able to articulate their visions and
strategies for action in effective ways as to influence
their followers”. A leader can help followers understand
why and how the activities they are engaging in are
meaningful, and this is largely accomplished through
language and interpersonal communication [56]
3.1 Theoretical Framework and Propositions
According to Muniapan and Dass [57], the study of
leadership is culture specific and the practice of
leadership is deeply attached to culture. For a leadership
to be effective, it has to be rooted in the cultural soil of
the country, where it is practiced. Owing to the crucial
role played by culture, cross-cultural leadership studies
have also caught the attention of many researchers in the
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last fifty years. Studies of leadership styles have
revealed that there are not only differences in the styles
preferred by followers in different national cultures, but
also the specific behaviors [58]. Recognizing this
importance of culture in leadership, many communities
and countries in the world are now trying to discover and
explore their own system of leadership.
Earlier studies have mainly focused U.S, Australia or
European Countries [59]. However, currently the interest
in the studies of Asian leadership is growing due to the
growth of the many Asian economies especially Japan,
the four tigers (Singapore, South Korea, Taiwan and
Hong Kong, which is now a part of China), China and
India. Pakistan and India, in terms of geography,
population size and cultural influence, are currently the
most important nations in Asia due to the consistent high
economic growth rates over recent decades. [57] As a
result an interest in studying leadership systems, culture,
Gender in Cross Cultural context is necessary not only
for the foreign multi-nationals operating in Asian
Countries, but also for the nations themselves who live
in Asia and around the world.
Figure 1. Proposed Model Exhibiting Relationship
Between Leadership Styles and Employee Performance
This particular study proposes a model based on Literature
review that Leadership Style has a positive relationship
with Employee Performance whereas Culture and Gender
play a mediating role having moderating effect of Leader‟s
Communication Skills. Four propositions have been
established and author has tried to prove those through
extensive literature review where as it should be clarified
that a proposition is similar to a hypothesis, but its main
purpose is to suggest a link between two concepts in a
situation where the link cannot be verified by experiment.
As a result, it relies heavily on prior research, reasonable
assumptions and existing correlative evidence. A scientist
can use a proposition to spur further research on a question
or pose one in hopes that further evidence
or experimental methods will be discovered that will make
it testable.
2
Leadership Styles and Employee Performance in
Different Cultures
Even after the conduction of 8000 Studies by Bass and
Stogdill (1990), we still need to explore lot much about
leadership and thus lesser is known due to the fact that
most of the studies, since last two centuries, have been
conducted in Western World, majorly in US and are
dominant even in Asian Countries [57, 58, 60]. These
theories may not be appropriate to be applied on a
worldwide basis, especially in cultures, which disagree /
differ in significant respects from the American culture;
also the lack of scrupulous research in eastern countries
Leadership Styles 1- Transactional 2- Transformational
Culture 1- Asian 2- European 3- American 4- Others
Gender
1- Male 2- Female
Employee Performance
Leader’s Communication Skill
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put a question mark on the universality of these theories
[59].
For instance, the study of Confucius is necessary to
understand the background of Chinese leadership
philosophy. [60] quotes Confucius regarding the concept
of Leadership:
"What qualifies one to participate in government?"
Confucius said, "Honor five virtues, and reject the four
vices. Then you can participate in government." His pupil
asked, 'What are the five virtues? Confucius said, "Good
people are generous without being wasteful; are
hardworking without being resentful; they desire without
being greedy; they are at ease without being haughty; they
are dignified without being fierce.” The pupil asked,
"What are the four vices?" Confucius replied, "To execute
without having admonished; this is called cruelty. To
examine accomplishments without having instructed; this
is called brutality. To be lax in direction yet make
deadlines; this is labeled viciousness. To be stingy in
giving what is due to others; this is called being
bureaucratic" (Analects 20:2).
According to Indian Authors [57], the Indian leadership
also has a strong philosophical tradition which continues to
maintain the interpersonal world in Indian organizations.
The Indian Culture is one of the oldest Cultures of the
world with 5000 years older history and contributions in
various fields. Some of the Indian classics are Valmiki
Ramayana, the Mahabharata (includes the Bhagavad-Gita),
the Puranas, etc offers several leadership lessons which are
useful even in the modern context, although it‟s more than
5000 years old literature.
The Islamic Perspective of Leadership is again very much
different in their philosophy and context whereas Muslims
contribute to one of the biggest population of the world;
also there are more than 50 Muslim Countries, thus the
culture and philosophy of such a huge segment of the
world can‟t be ignored. According to [61], there are a
number of differences between Western and Islamic
Leadership perspectives. Most of the things are Goals,
traits, styles, methodology, nature, decision-making
process, and participants are not similar between these two
types of leadership philosophies. For instance, Goals of
western leadership is to focus on Solution of a problem by
groups / organization, no reference to Divine efforts
whereas Islamic Perspective is Seeking Allah‟s pleasure in
solving a problem by group. In Western Perspective the
Participants are Formal and informal leaders and rarely
ordinary member whereas according to Islamic Perspective
the participants are Allah (The God), Rasul (The Prophet
P.B.U.H), the Leader and the followers. Moreover, the
major characteristics of Islamic Leadership as defined by
[61] are:
a. Allegiance:
“The Islamic managerial leader is bound in allegiance to
Allah.
b. Global Islamic Goals:
The leader perceives the goals of an organization not only
in term of the interests of the group, but also in terms of
wider Islamic objectives.
c. Adherence to Shariah and Islamic Manners:
The leader must adhere to Islamic injunctions. He can only
continue his office as long as he observes the principles of
Shariah. His behavior must conform to Islamic manners.
d. Delegated Trust:
Islamic leadership is a position with divine trust. He must
enjoy this trust with highest degree of responsibility”.
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Fig: 2 Islamic Model of Managerial
Leadership [61]
The review of the literature presents a wide variety of
cultural differences and the basis (background and
reasoning etc) of adopting once leadership style as well as
performance between western and eastern cultures even the
eastern cultures differ from each other too. However,
keeping the contextual factors (the basis and religion etc)
aside, the phenomenon of Leadership is universal in nature
and thus the applicability of leadership styles in different
cultures and organizations, whether transactional or
transformational have universality evidences [62] where
evidences have been gathered from all continents except
Antarctica. In fact, the paradigms are too broad to provide
a basis of measurement and inculcation; however, their
effectiveness may vary with respect to cultural
diversification; yet, both transactional and transformational
leadership styles have the capacities to develop and sustain
individual identity and meet follower‟s needs for self
enhancement (via inspiration and empowerment) and self
efficacy (via contingent rewards) [63]
Dicksona, et al. [64] defined several types of Universal
relationships including simple universal, variform universal,
functional universal, variform functional universal and
systematic behavioral universal, where only simple
universal relationship carries the meaning which is
understood in general i.e. a phenomenon constant
everywhere, and do not vary across the cultures. Thus, more
work is required and it is being carried out by the
researchers shown by several research presentations at
major conferences [64].
While studying the efficacy of leadership styles among
transactional and transformational; we come across
incoherent results across different cultures. For instance,
the impact of charismatic leadership on employee
satisfaction was greater on the American employees for
whom correlations of .50 and .70 were found, as compared
with correlations of .29 and .57 for the Mexican employees.
U.S. employees also generated higher correlations between
conditional reward and the measures of satisfaction with
work and with supervision (.48 and .73, respectively) in
contrast to the Mexican employees (.19 and .58,
respectively). [62]
In Indonesia, inspirational leaders brag about their own
competence to create pride and respect in themselves. In
doing so, such transformational leaders aim to reduce
subordinates' feelings of fear and shame. But, it would be
inappropriate for leaders to be so bragging in Japan.
There are cultural contingencies in manifesting
individualized consideration. According to interviews by
Yokochi (1989) with 17 Japanese CEOs of some of the
largest Japanese firms and MLQ questionnaire surveys of
135 Japanese managers at levels below them, effective
Japanese executives tended to be much more
transformational than transactional.
Transformational leadership may be autocratic and directive
or democratic and participative. Leaders can be
intellectually motivating to their followers when they
authoritatively direct the followers' attention to a hidden
conjecture in their thinking. Leaders could also be
intellectually motivating when they ask whether their group
would be ready to look together for hidden assumptions. In
the individualistic societies of North America, more
participative leadership would be expected of its
transformational leaders. In the collectivistic societies of
Asia, more directiveness would be expected of its
transformational leaders. How participative or directive the
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transformational leaders will be--how much they will
depend on authority--would also depend on the issue
involved. One would expect to see more authoritative
transformational leadership when policy decisions rather
than work place decisions are being made.
In highly democratic countries such as The Netherlands and
Australia, transformational leader behaviors are highly
correlated with participation in decision making (Den
Hartog, 1997; Feather, 1994). This implies that
transformational leaders may need to be more participative
to be effective in highly democratic societies. In contrast, in
high power distance societies, transformational leadership
may take a more command form (Den Hartog et al., 1999).
Similarly, according to an study conducted by Paracha, et
al. [12] in Pakistani Private School Chain of Educators
working in Rawalpindi and Islamabad revealed interesting
results where transactional leadership style was more
preferred over transformational leadership style. Results
reveal that the level of significance of transformational was
positive but weak then transactional leadership with respect
to employee performance, as Pakistan is a country where
power distance and uncertainty is high, and thus
transactional leadership is more suited in order to achieve
targets. It‟s a bureaucratic nation where one man show rules
and autocratic leadership follows throughout the whole
history, so employees assume themselves that their leader
will be strict and follow rules and regulation. Accordingly,
most of the private organizations prefer to motivate their
employees by using Transactional rewards such as
promotion, bonuses and punishments etc. However, with
the passage of time, the trend is slowly changing and
moving towards the transformational leadership style but
still the performance level is low as compared to
transactional leadership because employees feel relaxed
when they come to know that their leader is not going to
punish them.
Thus, due to variability and differences in application of
these leadership styles, both the optimal combination of
transformational and transactional style is crucial. After all,
in the present research, the latent construct of culture is a
function of both the positive impact of transformational
style and the negative impact of transactional style [65].
Hence the following propositions are proven accordingly:
Proposition 1: There is positive relationship between
different leadership styles and employee performance
across different cultures.
Proposition 2: Leadership Styles vary across different
cultures and have dissimilar effects on employees‟
performance.
3.3 Leadership Styles and Gender Differences
Hofstede [66] also describes a culture dimension labeled
Masculinity versus Femininity. According to Hofstede,
masculinity implies principal values in a society that stress
assertiveness and being tough, the possession of money
and material objects, and not caring for others, the quality
of life or people. In feminine cultures, values such as
affectionate social relationships, quality of life, and care of
the weak are stressed.
Hofstede also explicitly links this dimension to gender
differences. Research has shown that successful managers
are stereotypically viewed as more similar to men than to
women on characteristics considered critical to effective
work performance, such as leadership ability, self-
confidence, objectiveness, assertiveness, and forcefulness.
Though there is a substantial amount of within-culture
research on this (primarily in the United States), Schein
(2001) has established this both in the United States and in
several other countries (e.g., China, Japan, Great Britain,
and Germany). High societal masculinity characterizes
societies in which men are anticipated to be self-assured
and tough and women are expected to be modest and
affectionate. In contrast, low masculinity (or high
femininity) distinguishes the societies where both men and
women are expected to be modest and affectionate[66].
Achievement motivation and an acceptance of „„machismo
style‟‟ management should be greater in countries high on
masculinity than in those low on masculinity. Hofstede
(2001) holds that masculine and feminine cultures create
different leader hero types. The heroic manager in
masculine cultures is influential, self-assured, and
aggressive. In feminine cultures, the „„hero‟‟ is less
noticeable, seeks consensus, and is spontaneous and
cooperative rather than tough and influential. However,
studies do not always support this. For example,
Helgstrand and Stuhlmacher (1999) compare leader
prototypes of Danish and American participants. Danish
and American cultures have been found to be at variance
on masculinity and individualism. It was expected that
individuals would rate a leader candidate that matched
their own culture as more effective and more collegial than
a leader that did not match. Unpredictably, the highest
leader ratings were not in situations with a cultural match
between participants and leader candidate. Rather, both
cultures found feminine leaders as most collegial and
feminine–individualistic leaders as most effective.
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However, the research did not evaluate whether leaders
with those traits/styles were truly more effective.
According to Eagly, et al. [13] it is likely that higher
standards are imposed on women to accomplish leadership
roles and perhaps to maintain them as well. Because
transformational styles are particularly skillful in most
organizational settings, a tendency for women to have a
more transformational style than men could be a sign of the
selection of women who have met the higher standard that
is obligatory on women. Such women may also exhibit
more of the effective contingent reward transactional
behaviors and fewer of the ineffective transactional
behaviors (i.e., passive management by exception) and
laissez-faire behaviors. In addition, consistent with the
assumption of a double standard, women who manifested
these ineffective styles and thus performed inadequately
may be deselected from leadership more quickly than their
male counterparts.
Hence, the following proposition is proven accordingly:
Proposition 3: Leadership Styles vary due to gender
differences and have dissimilar effects on employees‟
performance.
3.4 Leadership Styles and Communication Skills
Including Gender Differences
According to Madlock [3] communicator competence
requires the ability of individuals to demonstrate
competencies in areas such as listening and negotiating. It is
indicated that as a consequence of changing work
environments in which employees are more educated and
intelligent than past generations, leaders are now required to
lead by conciliation. Specifically, in order for leaders to
persuade people to follow their vision, they have to
communicate effectively by concentrating on the interests
of the followers and creating win-win situation at both ends
i.e. for the organization as well as for the individual.
Harris and Cronen‟s (1979) research pointed out that
competent individuals must not only achieve their goals (be
effective) but also do so appropriately. In following with
this notion, communication competence has been
conceptualized to encompass elements of knowledge,
motivation, skill, behavior, and effectiveness.
According to Vries, et al. [6] communication is central to
leadership. Given the explosion of studies on charismatic-
transformational leadership, it is surprising that the number
of studies linking communication to charismatic-
transformational leadership is relatively sparse and directed
mostly at rhetoric skills and content. For instance, with
respect to communication styles, charismatic leadership
training studies have looked at the effects of training
inspirational presentation style on the trainees and their
public, showing positive effects of the training on the
trainees and on the attitudes and performance of their
public. The study showed that an expressive (enthusiastic)
presentation style had a much stronger effect than the
content of the speech. Because charismatic leadership has
been found to be strongly related to human-oriented
leadership and because human-oriented and charismatic
leadership are much more saturated with relational content
than task-oriented leadership.
On the other hand, cultural „styles‟ may play a role, with
subjects from the Netherlands valuing a less „expressive‟
style of interaction than for instance people from Southern
Europe. Secondly, task-oriented leadership is much less
strongly related to communication styles than charismatic
leadership and human-oriented leadership. Task-oriented
leaders are characterized by conviction and, more than
charismatic and human-oriented leadership, by preciseness.
However, in contrast with human-oriented and charismatic
leadership, task-oriented leadership is also portrayed
through the presence of (some) verbal aggressiveness. An
explanation of this finding may be that items pertaining to
task-oriented leadership, more than items pertaining to
human-oriented leadership and charismatic leadership,
reflect content (e.g., rules, planning, and goal-setting)
instead of style (e.g., friendliness, trust, and inspiration).
According to the Carli [67], women usually tend to exhibit
a social-emotional or relational orientation in interactions
with others, whereas men tend to exhibit a more
independent and unemotional orientation. The results of
Carli‟s research suggest that the inferior status of women,
compared with men, does affect women's speech. When
interacting with men, women spoke more hesitantly than
when interacting with women. Moreover, the use of hesitant
speech appears to be functional for women. Men were
influenced to a greater degree by women who spoke
hesitantly than by those who spoke assertively. It may be
important for a woman not to behave too competitively or
assertively when interacting with men in order for her to
exert any influence, even if she may risk appearing
incompetent. Moreover, those who contribute many task
behaviors are likely to be considered experts or leaders.
Therefore, the degree to which a person makes task
contributions should also be positively associated with his
or her ability to influence others [68].
Druskat [69] argues that Women‟s Leadership Style and
influence is consistent with Transformational Leadership
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style whereas Men‟s Leadership style is consistent with
Transactional Leadership Style where Men make use of
Power and Authority themselves whereas Women tend to
be sharing power and having supportive and encouraging.
Thus, communication is a powerful catalyst for establishing
and sustaining trust, the emotional state that is shared by
highly committed workers and leaders. Leader
communication is the linkage that passes on the behavioral
intent to employees, thus creating the groundwork for trust.
Moreover, Leader communication abilities can be enhanced
as a result of training, and this enhancement positively
affects the performance of direct reports or followers [70].
Hence, we can conclude the following proposition.
Proposition 4: Communication Skills of Leaders have
positive effect on employee performance across different
cultures, including gender differences.
4.1 Limitations and Future Implications
Following are the limitation and future implications of this
research:
Empirical Research of cross-nations as well as
cross – continents is required to be carried out for
studying the universality concept of Leadership and
effects of various leadership styles in various
cultures as well as gender differences.
The degree of variation in leadership styles and
employee performance integrating culture and
gender differences may be measured across the
continents.
Researchers may find out that which type of style is
most commonly used across the continents and
proves to be effective for getting desired employee
outcomes
Further, each dimension of Transformational
Leadership (Charisma, Inspirational Motivation,
Intellectual Stimulation, Individual Consideration)
as well as Transactional Leadership (Contingent
Reward and Management by Exception) may be
studied across nations for their usage, effectiveness
and variance.
Researchers may find out, whether similar or
dissimilar, effects of similar/dissimilar leadership
style in different cultures with same gender and
communication skills, on employee performance.
Moreover, the usage of styles at different levels of
organization as well as, at different job departments
of organization, across nations and effectiveness
could be studied as well.
Acknowledgement
Author is Mphil in Management Sciences (HRM) and is
experienced HR Professional with 10+ years Corporate
Experience at different levels. Author has been interested in
conducting researches in Leadership, Employee
performance and appraisal, Strategic HRD, Employee
Engagement etc and keen to lean and improve in the areas
of interest therefore feedback for improvement is always
welcome at [email protected]
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